Charts: Which Airline Stocks are Set to Fly?

CNBC.com

Thursday, 12 Feb 2009 | 7:02 AM ETCNBC.com

SHARES

The airline sector is enduring some serious turbulence due to the sharply weakening global economy, but some carriers, such as United Airlines and easyJet are set for a softer landing and could even take off, Daryl Guppy, CEO of GuppyTraders.com, told CNBC.com.

“United Airlines has a better probability of being able to take off (compared to Southwest Airlines),” Guppy said in the CNBC.com exclusive.

United “is showing a soft landing on a steady support level,” he added.

The US carrier has been stuck in a trading range between $15 and $7 per share, but a break above that range could send stocks soaring toward $30, Guppy said. Guppy has a “downside” target of $5 for Southwest Airlines .

Video: watch the full CNBC.com interview with Daryl Guppy above.

The UK airline sector is due for a harder landing than the US, according to Guppy, but low-cost carrier easyJet is having an easier ride compared to its premium competitor British Airways.

British Airways is seeing solid support at around $100 per share, but the airline won’t see “full takeoff” until it breaks through its trading-range high of $160, he said.

“Until then, it’s rally and retreat trading,” he added.

Singapore Airlines is trying to build a support level around $10, but investors should wait for more rebounds from this level, Guppy said.

“If this is successful, then we can look at a return to around the $14 or $15 mark,” he said, but warned a failure to form the base could cause a share-price tailspin toward $7.

Australia’s Qantas “has failed to hold support at around $2.30” and faces a nosedive toward the $1.50 level, Guppy said.